Supply can be disrupeted, access to markets can be stopped, protectionism can reduce demand, raw materials can rise in price because is shortages due to war or natural disasters, price of raw materials increases due to demand from elsewere.

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What are shocks?

Unexpected events or changes that happen suddenly and without warning. they can have considerable effects on businesses and the economy.

Increases risk, disruots planning- assumptions may be made on current conditions, diverts resources aways from core of business- managers give time to deal with problem, costly to cope-investment to keep up with rival, stressful,reduces profitability

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What is the difference between risk and uncertianty?

Something is risky if it might go wrong. Uncertianty is when it is impossible to predict an outcome.

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How can businesses use market research to reduce uncertianty?

More understands make a business better equipped to deal with changes, easier ot target consumers ad become orientated, actions of competitors, trends and oppertunities may be found in advance.

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How can businesses use contingency planning to reduce uncertianty?

Having a plan in readiness, thinking about potential problems, if problems arise they are ready which will save time and expense

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How can businesses use research and development to reduce uncertianty?

Can keep ahead of the competition, new ideas may be found, process and technological innovation.